Signet Jewelers reports holiday SSS down ~2% y/y

Signet Jewelers (SIG) announced its preliminary sales for the ten weeks ended January 11, 2025 and provided updated guidance for fourth quarter of fiscal year 2025. “Our holiday results of approximately -2% SSS reflect peak selling days leading up to Christmas that were below forecast. Engagement and Service sales were within expectations and we saw AUR increase in both Bridal and Fashion. However, fashion gifting underperformed as consumers gravitated to lower price points even more than anticipated in a continued competitive environment. Merchandise assortment gaps at key gifting price points impeded our ability to meet that trend,” said Joan Hilson, Chief Financial and Operating Officer. “Merchandise margin expanded, but less than expected due to the lower fashion mix and a stronger customer response to promotional items. These dynamics are reflected in our updated guidance.” “While there were positives in the underlying business performance during Holiday, I believe we have the opportunity to reshape our customer facing strategies in the areas of marketing, product design, and assortment innovation. I see meaningful potential to unlock shareholder value through the strength of both our brand portfolio and financial foundation. We can build on our industry leading position in bridal while dramatically accelerating our reach into the larger fashion categories of self-purchase and gifting to drive sustainable organic growth,” said J.K. Symancyk, Chief Executive Officer. Merchandise Average Unit Retail increased approximately 5% on lower traffic and conversion.